Henderson Smaller Companies is a member of Moneywise’s First 50 Funds for beginners. To find out more about investment trusts and how they work read the our guide: Investment trusts – the ins and outs.
Henderson Smaller Companies (HSL)
AIC sector: UK smaller companies
Objective: To maximise shareholder’s total returns by investing in smaller companies that are quoted in the UK.
Ongoing charge: 1.01%
Yield: 2.2%
Managed by Neil Hermon since 2002, Henderson Smaller Companies has since regularly outperformed its benchmark, the Numis Smaller Companies index.
The trust is relatively large for a smaller companies fund. This has seen Mr Hermon invest more in medium-sized companies than true ‘small companies’ – medium-sized companies typically account for around two thirds of the portfolio, while small companies (including Aim-listed stocks) make up the remainder.
Mr Hermon’s main focus is on looking for growth stocks at the right price. He finds his investments mainly by conducting hundreds of meetings with companies each year, where he assesses company managers and their strategy. He looks for ‘the four Ms’: model (a strong business model); management (managers with a good track record); money (strong balance sheets and cash flow); and momentum (good earnings momentum).
He takes a long-term investment approach, holding stocks for over five years on average, so he looks for companies that can grow over that period. Unusual for a smaller companies fund, the trust offers a reasonable income.
Section
Related stories
Source Moneywise http://ift.tt/2z8S2ha
ليست هناك تعليقات:
إرسال تعليق